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Stellar (XLM) Is on the Verge of a 200% Rally

April 22, 2021

Talking Points:

  • XLM is testing a 3-day demand territory between 0.453 USD and 0.546 USD.
  • A successful climb above this could launch XLM to huge gains.
  • If the support level at 0.422 USD is broken, XLM could fall by 5% to 0.401 USD.

XLM has witnessed a number of bullish moves but all have resulted in failed rallies. However, an accumulation may be happening behind the scenes, this could lead to an accenting run-up.

 

XLM is at a Tipping Point.

XLM has been on an upward move of late building higher highs and higher lows and has therefore created an ascending parallel channel when you link these points.

XLM’s last attempt at a surge failed just below the middle line of the pattern as the bears took over control of the bullish momentum. This pattern of events has moved XLM into a 3-day demand territory between 0.453 USD and 0.546 USD. If this momentum continues, it will give XLM the chance to create new highs after an amplified leg-up.

Adding support to this uptrend is XLM’s history within this parallel pattern. The previous three times it hit the channels’ lower trend line it witnessed a 150% to 200% rally. And on two of these breakouts, XLM price surged by 200%.

So if history repeats itself, bulls will anticipate a similar rally.

Therefore, the zones to focus on are the 127.2% and 141.4% Fibonacci extension levels at 1.08 USD and 1.45 USD, respectively.

 

XLM/USDT 1-Day Chart

However, investors should remember that the bullish viewpoint is set on the expectation that XLM will rebound off the ascending parallel channel’s lower line. If the bears are able to achieve a daily candlestick close below 0.422 USD, it could cancel out the upward momentum and lead to a bearish move.

This bearish move could see XLM price drop by 5% to 0.401 USD.

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